With global expansion plans, he attracted the backing of big-name Wall Street groups like Leucadia National Corp., which encompasses the investment bank Jefferies Group, and Schonfeld Strategic Advisors, which backed the hedge fund’s Asia unit.

Kumin, who had recruited some of Steve Cohen’s top traders while working at the billionaire’s high-profile fund, SAC Capital, is known for his boisterous personality and salesmanship. SAC Capital later was forced to close amid an insider trading scandal.

But Kumin’s fund has faced setbacks. Last year, the flagship fund fell 17.6%, and assets dropped to a low of about $US600 million from a peak of $US1 billion earlier in 2016.

Folger Hill manages about $US900 million firmwide, with about $US650 million in its US fund and $US250 million in an Asia fund it launched in November, the person said. The Asia fund is up about 2% this year, and the firm has an additional $US200 million that it can draw down, the person added.